4. RESTRUCTURING

In light of projected reduced operational demands as a result of the Collaboration Agreement with Janssen, on March 3, 2015, we announced an organizational resizing to reduce our workforce from 39 to 21 positions. We expect the majority of the reduction in our workforce to be completed by the end of the second quarter of 2015. In connection with this restructuring, we expect to record aggregate restructuring charges of approximately $1,748,000 related to one-time termination benefits which will be recognized on a pro-rata basis commencing from the date of announcement over the specified remaining service periods for the employees affected by the restructuring. For the three months ended March 31, 2015, we recognized $406,000 in restructuring charges for the pro-rata portion of the one-time termination benefits, which included $90,000 of non-cash stock-based compensation expense relating to the extension of the post-termination exercise period for certain stock options previously granted to employees affected by the restructuring from 90 days to one year from their respective termination dates. The majority of the remaining projected restructuring charges is expected to be recorded during the second quarter of 2015. We may incur other charges associated with this restructuring. Such charges, if any, will be recorded as they are determined. We expect this restructuring to be completed in 2015 and result in aggregate cash expenditures of approximately $1,377,000, the majority of which is expected to be paid in 2015. As of March 31, 2015, we have not made any payments in connection with this restructuring.

The components relating to the restructuring, including the outstanding restructuring liability which is included in accrued restructuring charges on our condensed balance sheet as of March 31, 2015, are summarized in the following table:

(In thousands)	Employee Severance and Other Benefits
Beginning accrual balance as of December 31, 2014	$	—
Restructuring charges	406
Adjustments or non-cash credits, including non-cash stock-based compensation expense	(90		)
Ending accrual balance as of March 31, 2015	$	316